Accident cars also called Salvage cars are often deemed irreparable by an insurance company in many developed countries like the USA. These are cars that have been badly damaged or involved in an accident; such that the estimated cost of repair is close to or more than the price of buying another car. In recent times, Nigerians have awakened to the fact that buying accident cars or salvaged cars is a cheap means of finally owning the car of their dreams.
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Usually, accident cars are sold at ridiculously cheap prices; about 40-60% of the original cost of the cars. In fact, the level of damage of the car determines the price at which the car will be sold- this means you could buy the car at even 30% of its original cost! The major selling point of accident cars is affordability; and in Nigeria, these types of cars are fast taking the place of Tokunbo or foreign used cars imported into the country.
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Truth is, not all cars tagged ‘Salvage cars’ or ‘ accident cars’ by an insurance company in developed countries are totally unrepairable. Countries like Nigeria have found a somewhat magical means of erasing the salvage title by totally refurbishing or ‘remaking’ an accident car after it has been shipped into the country. Nigeria is blessed with savvy mechanics and auto engineers who can evaluate the level of damage in an accidental car and totally refurbish it such that it looks brand new.
The process of importing a salvage car into Nigeria is similar to the process you will undergo when you import a brand new or foreign used car. The major place where accident cars can be bought and shipped into Nigeria is the USA. These cars often experience minor accidents which can be easily repaired in Nigeria, and are often sold at online car auctions. At these online auction sites, there are listings of salvage cars, their price, and the extent of repair it needs. Individuals can participate in buying these salvaged cars from auction websites; however, the process can be tedious, so it’s best to partner with a professional agency so as to safely get a good deal on a salvaged or accident car. Once the purchase has been done, the next thing is to have it shipped from the USA to Nigeria and get prepared to have it cleared by Nigerian customs.
Risk Of Buying And Shipping Accidented Cars
As I said earlier, most accident cars shipped into Nigeria are from the USA. However, a major risk involved in shipping accidents cars is that you cannot really tell the extent of the damage. Usually, you don’t see the car face-to-face to ascertain if the car is repairable at all or the cost it would take to repair. The picture or the review of the accident car you see online or on the auction site might not be all there is to the accident car.
When buying an accident car, as much as you can, pay careful observation to all the details of the car you can find. It is also good to allow an expert or the mechanic who will help you repair the car to have a look at it so that you can do a reasonable cost analysis of how much it would take to repair. This way, you don’t run at a loss or even exceed your budget for buying and repairing an accident car in Nigeria.
Cost Of Shipping Accidented Cars From The USA To Nigeria
Buying an accident car from the USA and shipping it to Nigeria has added fees and charges. Here is a breakdown of the estimated shipping cost of accident cars from the USA to Nigeria:
- You have to pay an auction fee when you are buying through an Auction abroad;
- you pay the shipping cost to the foreign country;
- you pay clearing fees and different port charges;
- your pay includes customs duty, levy, and VAT;
- you get charged for the commission, which goes to shipping and clearing agents;
- you pay charges to the shipping company at the delivery point;
- the costs also may include some miscellaneous expenses.
Cost Of Clearing Accidented Cars
As expected, you can’t bring any foreign goods into Nigeria without first passing through the Nigerian Customs Service. The Nigeria Customs Service is where you clear and get the legal permit to bring your purchased accident car into the country.
The cost of clearing an accident car in Nigeria is the same as the cost of clearing a normal brand-new or Tokunbo car. Currently, an import duty of 35% of the value of the car is charged plus an additional 35% levy. This means a total of 70% of the cost of an accidental car is charged to clear the car from the Nigerian Customs Service. For instance, an accidental car costing 2,000,000 NGN will require 1,400,000 NGN to clear it the Nigerian border.
This import duty charged by the Nigerian government is quite high, and this is to discourage the import of foreign cars into the country and promote the sales of locally made cars. Hence, when you want to buy an accident car from the USA, ensure you do a proper cost analysis so that you don’t run at a loss or exceed your budget. Remember, you still have to repair the car to make it fit and safe for driving on the road.
CONCLUSION
Accident cars can be an affordable way to buy the car of your dreams. You can make lots of profits from it compared to buying normal new or Tokunbo cars. However, to make your profit, pay careful attention and don’t forget to consider the cost of clearing your accident car in Nigeria.
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